Nixon Plan for Federal Revenue Sharing
President Nixon will unveil a federal revenue sharing plan on Friday that would supply cities and states with only about 500 million dollars, averaging roughly 10 dollars per state, as a modest start. Officials say Congress mood on tax cuts makes substantial increases unlikely for years, leaving localities to press claims as revenue sharing becomes law.
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Nixon sees tax reform risk to inflation battle
Washington (UPI) The Nixon Administration fears tax reform may slow progress by reducing federal revenue. Officials weigh whether to ask Congress to erase a 2 billion deficit while keeping most of the bill intact. The plan would cut individuals by about 9 billion through 1972 but likely raise only 7 billion in that period. The inflation fight remains precarious, with signals of cooling economy not yet secure. If inflation persists, deeper federal spending cuts could follow, risking Nixon’s domestic agenda. The administration aims to stop inflation, relying on surtaxes, tight money, and spending controls, with broader budget cuts possible.
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